A description of the Houston, Texas economy was recently published by the Greater Houston Partnership – a bright spot during the midst of instability in the US economy in the third quarter of 2007.You may want to check out Houston Business Review for more.
As national sub-prime mortgage issues continue to make front page news and have depressed major financial organisations’ stocks, citizens of the Houston area are asking: how is the economy in the Houston area going? The response is much better than in many other areas of the US, thanks in part to strong oil prices, a stable and diversified employment market and a housing market that continues to make progress. Furthermore with strong employment growth and a fast-growing economy, Houston area real estate continues to be a good investment opportunity.
The Economy in Houston
Although the Houston economy was primarily dependent on the oil industry during the 1980’s, the energy sector currently contributes about 40 percent of the GDP of the city. Today, the Houston economy is focused on a wide range of industries, including: oil and gas exploration, basic petroleum refining, petrochemical manufacturing, medical science, delivery of health care and high technology (computer, aerospace, climate, etc The Houston economy is highly diversified, with more than 50 percent of the workforce working in sectors that have a marginal, if any, effect.
The establishment jobs data released every month along with the unemployment rate, is the most widely followed series on the Houston economy. The Houston economy is strong and it is predicted that rental prices will increase. The economy of Houston is especially tied to trade. With its world-renowned energy company, medical centre, maritime port, and NASA Space Center, the Houston economy is globally within reach.
Relevant Houston Area Areas have seen price drops and additional retail inventory for this style of homes. At competitive NPVs and cap rates, Experienced Houston real estate investors have begun buying additional distressed and foreclosed properties. In the sub-prime market, they take advantage of distress (e.g. good purchasing opportunities), thus recognising that high regional job growth rates allow for increased demand for rent and housing. For individuals seeking to produce ongoing cash flow within this industry, this combination may create an attractive real estate investment portfolio.